Just closed on a 36 unit building in Calgary

RedlineBrett

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REIN Member
Oct 24, 2007
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Calgary
#1
Big news for our business... our first multifamily acquisition.



We had everything going in this one so we really learned a lot... capital raise of $1.55M in a GP/LP structure with 8 partners and two tier bank financing to get to close. Property already condominiumized and will be 2 blocks to a C-train station on the west leg of the LRT when it opens in 2012. Look for our sign just west of 26th street and 17th avenue in the next couple of weeks.



Now that the stressful part of co-ordinating everything for closing is behind us we get to shift to operations which we have a lot more experience with.



I feel I am a lot closer to my 'belize' of creating a company that serves the real estate consumer from renting to owning to investing. For a long time it felt as though we were spreading ourselves too thin by trying to do it all but now with this building and the Redline team (15 strong) it is starting to come together.



Many thanks to Don and the REIN research gang for all the transportation effect reports which we used in sourcing this property and pitching our investors. Also thanks to Thomas Beyer for his insightful posts which helped prepare us to make this move.



Interestingly enough my real estate career started with the purchase of one 800ft condo in a 36 unit building on the first of May just six years ago. I was 23 at the time. I hope this post serves as inspiration to young investors that you can in fact build whatever business you want IF you want it enough.
 

ThomasBeyer

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REIN Member
#2
Congratulations Brett !!



Impressive at this age ! When I was your age I could not spell real estate, let alone in English nor the words syndication, LP, depreciation schedules, JV nor mortgage .. those where all strange terms to me then !!



Keep it up man .. now onto the tough part: making a 5% CAP rate building cash flow in Calgary (especially with 2 tier financing .. which I assume means: a 1st and a 2nd mortgage) !!
 
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ThomasBeyer

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REIN Member
#8
[quote user=bizaro86]young Calgary condo investors.


indeed .. I started with a rental pooled condo in Calgary in 1997 .. and after 2 more bought a 15 suiter in 2000 .. and the rest, as they say, is history ..



A condo is essentially a fractional apartment building .. just not as efficient (to buy and operate) !!
 
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bizaro86

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Jan 29, 2008
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Calgary, AB
#10
[quote user=ThomasBeyer]indeed .. I started with a rental pooled condo in Calgary in 1997 .. and after 2 more bought a 15 suiter in 2000 .. and the rest, as they say, is history ..





Which is one of my favourite things about this forum. I can learn from those further along a path than myself, and gain inspiration and knowledge from their experience. (Like Brett and yourself!)



Best regards,



Michael
 

housingrental

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Oct 10, 2007
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Waterloo
#15
Edited



[quote user=ThomasBeyer][quote user=housingrental]What's next? hanging on .. financially and emotionally .. not that easy with 2 mortgages in a low CAP rate market like Calgary .. but well worth the (equity upside + mortgage paydown) rewards 5+ years hence !
 

ThomasBeyer

Senior Forum Member
REIN Member
#16
[quote user=housingrental]What's happened to you?


What happened ? Nothing happened .. except that perhaps some folks expect only positive feedback ..

my goal is to share the truth .. to comment .. to state opinions that hep others get better and become successful .. to be more AWARE .. and the truth is not always positive.



This is not a "go ra ra .. all is well" forum, is it ?



it's about discernment i.e. awareness .. not too easy to show in a face-less forum like a blog .. better in person such as the REIN bus tour yesterday through Surrey and Maple Ridge.
 
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RedlineBrett

Senior Forum Member
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Oct 24, 2007
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Calgary
#17
[quote user=housingrental]Good work

What's next?





Thanks Adam.



This building will serve as a proving ground for the business model I envision us implementing... one that connects all aspects of our business together and makes us a more attractive investment opportunity for institutionalized capital.



So long story short it will be sell more houses, write more mortgages and build that track record!
 

RedlineBrett

Senior Forum Member
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Oct 24, 2007
2,271
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Calgary
#20
Got an engineering degree - got a real job - bought condo -got my real estate license - busted my a$$ working two jobs for 3 years - opened a brokerage - busted my a$$ for 3 more years and witnessed the market skyrocket then dive bomb - impressed enough family, friends and business acquaintances to raise $1,550,000 and qualify for a 3.2M loan - bought building.



There is no easy money in real estate. Not anymore. If you want real results be prepared to make sacrifices and take risks. I've lost more money than most of my friends have made but I've built five businesses and each make money every month and now I'm on another level. Not done yet though.



Success breeds more success and hard work and confidence attract people to your business. The more deals you do the smarter you get and the less BS the world makes you go through. I'm now looking at two other deals each around $3M and having a much easier go of it all.